ASX-listed Syrah Resources has signed a binding term sales agreement with Qingdao Taida-Huarun New Energy Technology.

Taida-Huarun New Energy Technology (Taida), based in Shandong, China focuses on research and development and produces carbon materials including spherical graphite for battery anode materials.

The agreement commences immediately and is for 20 kt of natural graphite from Balama by 31 August 2019. All other terms of the agreement are confidential.

“This contract is another demonstration of Syrah Resources’ Balama graphite product penetration into China and the battery anode material market,” comments Shaun Verner, MD and CEO of Syrah Resources.

“It is also pleasing to see the significant volume of spot sales translating into this type of quality longer term commitment, as the sales book continues to evolve.

“Syrah Resources is establishing Balama product as a baseload for battery anode materials and other industrial specialty applications and we look forward to a successful
relationship with Taida,” he continues.

Balama graphite project

Syrah Resources owns and developed the Balama graphite project in Mozambique.

Balama transitioned to operations with sales and shipments to a global customer base including the battery anode producers, from the start of 2018.

Balama will be the leading global producer of high purity graphite.

Balama production is targeted to supply traditional industrial graphite markets and emerging technology markets.

Syrah Resources is also developing a downstream Battery Anode Material plant in Louisiana, USA and has successfully completed extensive product certification test work with several major battery producers for the use of Balama spherical graphite in the anode of lithium ion batteries.